Caesars Entertainment to Report Q3 Earnings: What's in the Offing?

Caesars Entertainment, Inc. CZR is scheduled to report third-quarter 2025 results on Oct. 28, after the closing bell.

CZR’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters and missed on three occasions, the average surprise being negative 206.8%.

Trend in the Estimate Revision of CZR

For the quarter to be reported, the Zacks Consensus Estimate for loss per share has widened to 10 cents from a loss of 2 cents in the past seven days. In the prior-year quarter, CZR reported a loss per share of 4 cents.

For revenues, the consensus mark is pegged at nearly $2.89 billion. The metric indicates a rise of 0.5% from the year-ago quarter’s figure.

Let us take a look at how things have shaped up in the quarter.

Factors Likely to Shape CZR’s Q3 Quarterly Results

Caesars Entertainment’s Las Vegas operations are likely to have remained a strong contributor to revenues in third-quarter 2025. Higher occupancy levels, rising average daily room rates and the impact of recent hotel renovations at properties such as the Versailles Tower in Paris and the Colosseum Tower at Caesars Palace have supported gains. 

The company’s ability to push pricing across not just rooms but also food, beverage and amenities like cabanas implies that non-gaming revenue growth continued to bolster results. In addition, major events like the World Series of Poker are expected to have boosted hotel stays, casino activity and dining, helping to drive overall performance in Las Vegas.

Digital operations also stand out as a growth engine. Sports betting and iGaming have been expanding at a healthy pace, aided by stronger hold rates, growth in parlay wagers and customer engagement improvements from product upgrades. The Caesars Palace Online platform continues to gain traction and the rollout of the Horseshoe-branded app should have provided incremental lift during the quarter. Strategic acquisitions, such as WynnBet’s Michigan operations and sports tech firm ZeroFlucs, have further enhanced product offerings and market positioning, likely supporting top-line momentum in the third quarter. 

The Zacks Consensus Estimate for third-quarter Regional revenues is pinned at $1.5 billion, implying a 2.4% year-over-year increase. Meanwhile, the consensus estimate for Managed and Branded revenues is pegged at $69 million compared with $68 million reported in the year-ago period. The Zacks Consensus Estimate for total Las Vegas revenues is pegged at $1 billion, indicating a 5.4% decline from the prior-year quarter’s figure.

Despite healthy revenue streams, profitability is likely to have been pressured by ongoing cost headwinds. Elevated labor expenses in Las Vegas, tied to union contracts, combined with construction disruptions at key regional properties like New Orleans, might have weighed on margins. Regional markets also continued to face competitive challenges, such as new openings in Indiana and weaker group business in Reno, which reduced flow-through to earnings. While the company maintained cost discipline, these factors, along with higher sponsorship and tax burdens in certain jurisdictions, are likely to have limited bottom-line expansion in the third quarter.

What Our Model Says About CZR Stock

Our proven model does not predict an earnings beat for Caesars Entertainment this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

CZR’s Earnings ESP: Caesars Entertainment has an Earnings ESP of +37.65%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

CZR’s Zacks Rank: The company has a Zacks Rank #4 (Sell) at present.

Stocks Poised to Beat on Earnings

Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.

Norwegian Cruise Line Holdings Ltd. NCLH has an Earnings ESP of +0.80% and a Zacks Rank of 1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
 
Norwegian Cruise Line is expected to register a 17.2% increase in earnings for the to-be-reported quarter. With the average surprise being 29.1%, Norwegian Cruise Line reported better-than-expected earnings in two of the trailing four quarters and missed on two occasions.
 
Boyd Gaming Corporation BYD currently has an Earnings ESP of +1.75% and a Zacks Rank of 3.
 
Its earnings for the to-be-reported quarter are expected to increase 1.3%. Boyd Gaming reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 9.1%.
 
PENN Entertainment, Inc. PENN currently has an Earnings ESP of +13.00% and a Zacks Rank of 3.

Its earnings for the to-be-reported quarter are expected to increase 58.3%. PENN Entertainment reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 92.7%.

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This article originally published on Zacks Investment Research (zacks.com).

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